Wavering waiver?
SPY•AI-linked stocks faced another test ahead of earnings, after the SOX chip index fell more than 10% last week. Brent crude fell 2% Monday as markets weighed possible US waivers on Russian oil sanctions.
1. AI stocks face earnings test
Earnings from Meta, Tesla, Texas Instruments and others this week will give investors a chance to assess concerns about AI investment and financing. The SOX chip index lost more than 10% last week, while data center builder CoreWeave fell 25%. Investors are watching Meta’s investment spending growth as questions grow about capital costs, revenue growth and what AI developers can charge customers.
2. Oil and bond markets
Treasury yields retreated sharply as stocks fell, despite hotter-than-expected US inflation readings for September. Brent crude, which reached $110 a barrel Friday, fell 2% Monday as attention shifted to possible US waivers on Russian crude sanctions. Secretary of State Marco Rubio said President Trump would take up to 60 days to assess the impact of waiving sanctions.
3. China and Indonesia
China reported third-quarter GDP growth of 4.5%, while September retail sales growth exceeded forecasts. Indonesia’s stock benchmark fell again after MSCI said it may remove the country from its emerging-market indexes over governance and transparency concerns; the benchmark is down more than 40% this year.
